VA awards $432K for coagulation testing supplies, highlighting a single-vendor BPA call

Contract Overview

Contract Amount: $432,809 ($432.8K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-12-02

End Date: 2021-12-01

Contract Duration: 364 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VISN-WIDE COAGULATION CPRR

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $432,809.15 to WERFEN USA LLC for work described as: VISN-WIDE COAGULATION CPRR Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) call, suggesting pre-negotiated terms. 2. The contract value is relatively small, indicating a focused scope of work. 3. Fixed-price contract type suggests cost certainty for the government. 4. The award was made to WERFEN USA LLC, a potential indicator of specialized capabilities. 5. The duration of the contract is one year, allowing for regular re-evaluation of needs. 6. The specific product service code (PSC) is not detailed, limiting deeper analysis of the goods/services.

Value Assessment

Rating: fair

The contract value of $432,809.15 for a one-year period appears reasonable for specialized laboratory instrumentation and supplies. Without specific details on the exact instruments or quantities of reagents, a direct comparison to similar contracts is challenging. However, the firm fixed-price nature provides cost predictability. The award to a single vendor via a BPA call suggests that pricing may have been established through prior competitive processes or market research, but the immediate value for this specific call is difficult to benchmark without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION' through a BPA call. While the initial BPA may have been established competitively, the specific call to WERFEN USA LLC implies that this particular task order was likely competed among pre-qualified vendors or potentially awarded based on specific capabilities identified within the BPA framework. The number of bidders for this specific call is not provided, which limits the assessment of the intensity of competition for this particular award.

Taxpayer Impact: The full and open competition designation is positive for taxpayers, indicating that the government sought the best possible offers. However, the reliance on a BPA call without explicit details on the number of competing offers for this specific instance means the full benefit of price discovery might not be fully realized if competition was limited at the call stage.

Public Impact

Veterans receiving diagnostic testing services through the VISN-WIDE COAGULATION CPRR program benefit from access to necessary laboratory equipment and supplies. The contract supports the delivery of critical diagnostic capabilities within the Veterans Health Administration network. The geographic impact is VISN-WIDE, suggesting services are available across multiple facilities within a Veterans Integrated Service Network. The contract ensures the availability of specialized coagulation testing, crucial for patient diagnosis and treatment planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed product/service specifics limits understanding of true value and potential for cost savings.
Competition level for the specific BPA call is not detailed, raising questions about optimal price discovery.
Reliance on a single vendor for a specific call could indicate limited market options or a strategic sourcing decision.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified vendors.
Firm fixed-price contract provides budget certainty.
BPA call mechanism can streamline procurement for recurring needs.

Sector Analysis

The contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically related to diagnostic testing supplies. This sector is characterized by specialized equipment and reagents crucial for healthcare providers. Spending in this area is driven by the need for accurate and timely diagnostic information. Comparable spending benchmarks would typically involve analyzing contracts for similar laboratory equipment, reagents, and maintenance services across federal healthcare agencies, particularly within the VA and DoD.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor, WERFEN USA LLC, engages small businesses in its supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' procurement and program management offices. As a BPA call, the underlying BPA likely has established oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are not publicly available. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Veterans Health Administration Medical Supplies
Diagnostic Laboratory Equipment Procurement
Federal Supply Schedule (FSS) Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Limited competition data for BPA call
Lack of detailed product/service specification
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $432,809.15 to WERFEN USA LLC. VISN-WIDE COAGULATION CPRR

Who is the contractor on this award?

The obligated recipient is WERFEN USA LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $432,809.15.

What is the period of performance?

Start: 2020-12-02. End: 2021-12-01.

What is the track record of WERFEN USA LLC with the Department of Veterans Affairs?

WERFEN USA LLC has a history of contracts with the Department of Veterans Affairs, primarily related to laboratory equipment and diagnostic supplies. Analyzing their contract history reveals a pattern of awards for similar products and services, often through competitive processes or established agreements like BPAs. The value and duration of these past contracts can provide insights into the company's performance and pricing consistency. A review of contract databases shows multiple awards to WERFEN USA LLC across different VA facilities and VISNs, suggesting they are a recognized supplier within the VA ecosystem. Further analysis would involve examining performance evaluations and any past issues or commendations associated with their previous VA contracts to fully assess their track record.

How does the pricing of this contract compare to similar coagulation testing procurements?

Benchmarking the pricing for this $432,809.15 contract is challenging without specific details on the exact coagulation analyzers, reagents, and associated services procured. The contract is a BPA call, implying that pricing may have been established during the initial BPA competition or through pre-negotiated rates. To compare, one would need to identify contracts for similar coagulation testing solutions from other federal agencies (e.g., DoD, HHS) or even large commercial healthcare systems. Key comparison points would include the cost per test, cost per instrument, or cost per unit of reagent. The firm fixed-price nature provides cost certainty but doesn't inherently guarantee the best market price without competitive pressure at the call level. A detailed analysis would require access to the specific CLINs (Contract Line Item Numbers) and quantities within this BPA call.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential overpricing if the competition at the BPA call level was limited, leading to suboptimal value for taxpayers. There's also a risk of vendor lock-in if WERFEN USA LLC is the sole provider of essential reagents or maintenance for the specific instruments deployed, potentially limiting future flexibility and cost-saving opportunities. Supply chain disruptions for specialized reagents or instruments could impact the continuity of critical diagnostic services for veterans. Furthermore, if the contract scope is not precisely defined, there's a risk of scope creep or unmet performance expectations. The reliance on a single vendor for this BPA call, without detailed competition data, represents a moderate risk to achieving the best possible economic outcome.

How effective is the use of BPA calls for procuring laboratory supplies like these?

Blanket Purchase Agreements (BPAs) are generally an effective tool for streamlining the procurement of recurring needs, such as laboratory supplies, by establishing pre-negotiated terms and conditions with one or more vendors. For this specific contract, a BPA call allows the VA to quickly order necessary coagulation testing supplies from WERFEN USA LLC, presumably at pre-determined prices. This efficiency can reduce administrative burden and lead times. However, the effectiveness in terms of value for money depends heavily on the initial competition for the overarching BPA and the subsequent competition or pricing structure for each individual call. If the BPA was competitively awarded and the call mechanism encourages competitive pricing or leverages volume discounts, it can be highly effective. If competition is lacking at the call level, the effectiveness in achieving optimal pricing may be diminished.

What is the historical spending trend for coagulation testing supplies at the VA?

Analyzing historical spending trends for coagulation testing supplies at the VA is crucial for understanding the scale and consistency of this requirement. While this specific contract is for approximately $432K over one year, broader VA spending on coagulation diagnostics could be significantly higher, encompassing multiple VISNs, different contract vehicles (like FSS, other BPAs, or individual solicitations), and various vendors. A trend analysis would involve aggregating spending data over several fiscal years to identify patterns, fluctuations, and potential increases or decreases in demand or cost. This historical context helps in evaluating whether the current contract value is in line with past expenditures, whether spending is increasing or decreasing, and if there are opportunities for consolidation or strategic sourcing to achieve better pricing or efficiency across the entire VA system.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 HARTWELL RD, BEDFORD, MA, 01730

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $432,809

Exercised Options: $432,809

Current Obligation: $432,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C25920A0007

IDV Type: BPA

Timeline